KUCHING: Sarawak is set to receive an initial investment of US$1 billion (approximately RM4.07 billion) for the development of artificial intelligence (AI) infrastructure, out of the total US$1.85 billion in initial capital planned for AI infrastructure development in Malaysia.

Sarawak Premier Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang Openg said the US$1.85 billion represents the overall investment in Malaysia and is not solely allocated to Sarawak.

"The entire entity is investing US$1.85 billion in Malaysia, and about US$1 billion has been allocated to Sarawak.

"I was referring to the total investment. We cannot mention Sarawak alone because the investment involves the entire country. The agreement has also been signed," he explained.

He said this when met by reporters after attending the Sarawak State Leadership and Empowerment Convention for Form Six Students 2026 here on Tuesday.

He added that Sarawak would become a major hub for AI infrastructure, with Tanjung Embang identified as the location for the development.

Previously, SoftBank Group Corp. (SoftBank), Grab Holdings Limited (Grab) and Petroleum Sarawak Berhad (PETROS) announced plans for an initial investment of US$1 billion to develop large-scale AI infrastructure in Sarawak.

The development targets AI computing capacity of up to 5 gigawatts in the long term, besides exploring opportunities in advanced technology, robotics, AI services, as well as local workforce and community development.

In this regard, a joint media statement issued by the three companies on Monday announced the signing of a Joint Development Agreement (JDA), subsequent to a Framework Agreement signed in Kuching on 8 October.

Under the collaboration, SoftBank will lead the project's development and hold a majority stake, while Grab and PETROS will serve as strategic partners, contributing their expertise in AI technology, digital services, energy and infrastructure development.

Also present were Minister for Education, Innovation and Talent Development Dato Sri Roland Sagah Wee Inn, Minister for Youth, Sports and Entrepreneur Development Dato Sri Abdul Karim Rahman Hamzah, Deputy Minister for Education, Innovation and Talent Development Datuk Dr Annuar Rapa’ee, Deputy Minister in the Sarawak Premier's Department (Project Coordinator for Regional Development Agencies, DBKU and Islamic Affairs) Datuk Dr Abdul Rahman Junaidi, Sarawak State Education Department Director Dato Omar Mahli and other distinguished guests. -UKASnews